NEW YORK, Sept 22 (Reuters) - Allergan Inc has
revived discussions to buy Salix Pharmaceuticals Ltd,
a person familiar with the matter said on Monday, asking not to
be identified because the talks are confidential.

The exact status of the discussions between the two
drugmakers could not be immediately established. Spokesmen for
Allergan and Salix declined to comment.

Botox maker Allergan is trying to seal a deal with Salix in
order to fend off a $53 billion hostile offer from Valeant
Pharmaceuticals Inc. Salix said in July it would merge
with an Irish subsidiary of Cosmo Pharmaceuticals SpA
in a so-called tax inversion.

Top Salix shareholders do not like the deal with Cosmo and
are likely to vote it down, Reuters reported last week, putting
pressure on the company to consider a takeover offer instead.

A deal with Raleigh, North Carolina-based Salix, which makes
drugs for gastrointestinal disorders, could also complicate
Valeant's bid for Allergan. Allergan agreed last week to reach a
settlement with Pershing Square Capital Management, in which the
company would hold a special meeting on Dec. 18. Pershing Square
and Valeant might try to remove Allergan board members during
the meeting.

Pershing Square, Allergan's largest shareholder with a 9.72
percent stake, and Valeant made a hostile offer for Allergan in
April. Since then, Allergan has been fighting to obtain investor
support for its own stand-alone plan, which includes cost cuts
and making an acquisition of its own.

To force the company to the table, Pershing's Bill Ackman
has been pushing for a special meeting where he hopes to replace
most board members with his own nominees, who he expects will be
more receptive to Valeant's bid.
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